Tungray Technologies Inc Reports 2024 Full Year Financial Results
PR Newswire
SINGAPORE, May 14, 2025
SINGAPORE, May 14, 2025 /PRNewswire/ -- Tungray Technologies Inc ("Tungray" or the "Company"), a global Engineer-to-Order $(ETO)$ company, today reported its financial results for the twelve months ended December 31, 2024.
Full Year 2024 Financial Highlights
-- Total revenues for the year ended December 31, 2024 decreased by 10.8%
to $12.8 million, compared to $14.4 million for 2023.
-- Gross margin for the year ended December 31, 2024 was 43.7%, compared to
46.7% for 2023.
-- Operating loss for the year ended December 31, 2024 was $0.7 million,
compared to an operating income of $1.1 million for 2023.
-- Net loss for the year ended December 31, 2024 was $0.6 million, compared
to net income of $0.8 million for 2023.
Recent Developments and Strategic Highlights:
Cost-Cutting Measures:
The Company has implemented targeted cost control actions aimed at reducing expenses, enhancing operational efficiency, and renegotiating supplier contracts.
These actions include:
-- Identifying and utilizing high-trade volume suppliers. -- Leveraging volume to negotiate favorable rates for common-use components.
Revenue Enhancement:
To drive sales growth, the Company is exploring potential horizontal strategic partnerships to access new, high-value capabilities.
These initiatives include:
-- Introducing new lines of business through potential partnerships with
existing companies.
-- Utilizing the "market-for-tech" model to leverage Singapore's hub
position for regional business expansion.
-- Exploring technologies and services such as metal 3D printing for
precision engineering, standardized manufacturing of medical components,
and contract repair work for aviation components, such as aircraft engine
fan blades and turbines.
-- Enhancing sales and market penetration by hiring a dedicated
business-focused market and sales manager. This initiative will focus on:
-- Increasing market penetration of non-printer related markets in
the Southeast Asia $(SEA)$ region.
-- Focusing primarily on the semiconductor, automotive and
non-printer related consumer product sectors.
Management Commentary
Mr. Wanjun Yao, Chairman and Chief Executive Officer of Tungray, commented, "Despite ongoing pressure on revenue and profitability in 2024, we successfully expanded our customer base. This pressure was partly driven by lower revenue per customer, resulting from shifts in sales mix, pricing strategies, order volumes, and broader market conditions. For example, as of year 2024, China and Singapore's manufacturing automation industry was experiencing intense price competition, driven by overcapacity, economic pressures. To address these challenges, we remain focused on strengthening customer retention, enhancing service offerings, and expanding high-value customer relationships to support sustainable revenue growth."
"While navigating these market dynamics, we remain committed to delivering sustainable, innovative growth, underscored by a 34.3% increase in R&D year-over-year. In 2024, this investment supported the launch of over a dozen new projects aimed at expanding our product portfolio, accelerating innovation, and strengthening our competitive position. These ongoing efforts are designed to ensure we are well-positioned for long-term success as the market stabilizes."
"Looking ahead to 2025 and beyond, we continue to adapt to an evolving market landscape. We are actively exploring 3D metal printing solutions aimed at delivering value-added solutions to both existing and prospective customers in high-end sectors such as commercial aviation, offshore marine, and oil & gas industries. Our focus remains on delivering long-term shareholder value while strategically positioning the company for sustainable growth and success in a dynamic market environment," Mr, Yao added.
Fiscal 2024 Financial Results
Total Revenues
Total revenues decreased by 10.8% to $12.8 million for the year ended December 31, 2024, compared to $14.4 million for the year ended December 31, 2023.
-- Revenues from customized products decreased by $1.6 million or 13.6% for
the year ended December 31, 2024, primarily driven by the sales price
decrease due to competitive dynamics and strategic decisions to retain
market share.
-- Revenues from standardized products increased by $42,000, or 1.6% for the
year ended December 31, 2024, mainly due to the increase in sales volume,
offset by the reduction in average selling prices across key production
lines to retain market share.
Cost of Revenues
Total costs decreased by 5.7% to $7.2 million for the year ended December 31, 2024, compared to $7.7 million for the year ended December 31, 2023.
-- The cost of revenues for customized products down by $0.5 million, or
9.9% for the year ended December 31, 2024, driven by sales volume
decrease.
-- The cost of revenues for standardized products increased by $93,000, or
4.1% for the year ended December 31, 2024, as a result of improved sales
volume.
Gross Profit
Gross profit was $5.6 million for the year ended December 31, 2024, representing a decrease of 16.6% year over year from $6.7 million for the year ended December 31, 2023. Gross margin was 43.7% for the year ended December 31, 2024, compared to 46.7% for 2023.
-- Gross profit for customized products was $5.3 million for the year ended
December 31, 2024, a decrease of 16.8% as compared to $6.3 million for
the year ended December 31, 2023. Gross margin for customized products
was 52.1% for the year ended December 31, 2024, and 54.1% for the year
ended December 31, 2023. The decrease was mainly due to the decrease of
unit selling prices and the increase of labor costs.
-- Gross profit for standardized products was $0.4 million for the year
ended December 31, 2024 compared to $0.4 million for the year ended
December 31, 2023. Gross margin for standardized products was 12.0% for
the year ended December 31, 2024, and 14.2% for the year ended December
31, 2023. The decrease was due to pricing decrease for retaining the
market share.
Operating Expenses
Total operating expenses were $6.3 million for the year ended December 31, 2024, representing an increase of 11.4% year over year from $5.6 million for the year ended December 31, 2023.
-- Selling expenses increased by $0.2 million or 41.3% from $0.4 million for
the year ended December 31, 2023 to $0.6 million for the year
ended December 31, 2024. The increase was mainly due to higher
advertising, travel, hospitality and compensation expense related to
business expansion and efforts to enhance product quality.
-- General and administrative expenses increased by $0.2 million or 4.5%
from $4.4 million for the year ended December 31, 2023 to $4.6 million
for the year ended December 31, 2024. The increase was mainly due to the
increase in (i) professional service fee of approximately $244,000
associated with IPO which are not capitalized, (ii) depreciation expense
of approximately $152,000 due to new purchase of machines, and (iii)
insurance expenses of approximately $89,000 for Directors and Officers
Liability insurance during the year ended December 31, 2024. The increase
was offset by the decrease of (i) salaries and wages expenses of
approximately $173,000 due to workforce elimination to cut costs during
the year ended December 31, 2024, (ii) travel expense, meals and
entertainment expense of approximately $72,000 for cost enhancement.R&D
expenses increased by 34.3% for the year ended December 31, 2024 as
compared with the year ended December 31, 2023. The increase was driven
by the previously announced initiatives aimed at strengthening product
offerings, advancing innovation, and maintaining market competitiveness.
(Loss) Income from operations
Loss from operations was $0.7 million for the year ended December 31, 2024, compared to income from operations of $1.1 million for the year ended December 31, 2023.
Total Other Income, net
Total other income was $0.4 million for the year ended December 31, 2024, compared to total other income of $0.2 for the year ended December 31, 2023.
Income tax expense
Income tax expense decreased by approximately $0.3 or 48.3%, from $0.5 million for the year ended December 31, 2023 to $0.2 million for the year ended December 31, 2024.
Net (Loss) Income
Net loss was $0.6 million for the year ended December 31, 2024, compared to net income of $0.8 million for the year ended December 31, 2023.
About Tungray Technologies Inc
Tungray Technologies Inc is an Engineer-to-Order (ETO) company that provides customized industrial manufacturing solutions to original equipment manufacturers (OEMs) in the semiconductors, printers, electronics, and home appliances industries. With research, development and manufacturing bases in Singapore and China, Tungray designs, develops, and delivers a wide range of industrial products ranging from customized manufacturing machineries, direct drive and linear direct current motors, to induction welding equipment. As an ETO company with more than two decades of experience, Tungray takes pride in its ability to deliver quality customized industrial solutions that fulfil its customers' unique needs and specifications. For more information, visit the Company's website at http://tungray.com/.
Forward-Looking Statements
All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate, " "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's filings with the SEC.
For more information, please contact:
Investor Relations:
Bill Zima
Email: tungray@icrinc.com
Tungray Technologies Inc and Subsidiaries
Consolidated Balance Sheets
As of As of
(Stated in U.S. Dollars) 31-Dec-24 31-Dec-23
----------- -----------
ASSETS
CURRENT ASSETS
Cash $ 8,968,814 $10,802,405
Restricted cash 503,544 -
Accounts and notes receivable, net 2,393,902 3,574,739
Accounts receivable - related parties 327,556 319,589
Inventories, net 2,206,329 2,283,809
Prepayments, net 726,991 259,950
Prepayments - related parties, net 3,582,032 1,048,745
Other receivables and other current
assets, net 507,523 215,651
Other receivables - related parties 553,736 23,816
---------- ----------
Total current assets 19,770,427 18,528,704
---------- ----------
PROPERTY AND EQUIPMENT, NET 6,173,176 6,326,369
---------- ----------
OTHER ASSETS
Prepaid expenses and deposits 79,088 23,163
Prepayment for land use right 1,987,685 -
Long-term investment 205,499 211,271
Operating right-of-use assets 1,411,033 712,261
Finance right-of-use assets 221,847 -
Intangible assets 59,148 55,842
Deferred initial public offering
("IPO") costs - 1,192,734
Total non-current assets 3,964,300 2,195,271
---------- ----------
Total assets 29,907,903 27,050,344
========== ==========
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable 1,359,244 1,048,271
Accounts payable - related parties 79,988 498,923
Contract liabilities 6,115,315 4,010,832
Accrued expenses and other payables 1,450,005 1,289,941
Other payables - related parties 338,453 670,866
Current portion of banking facilities 80,588 140,162
Current portion of operating lease
liabilities 184,201 46,232
Current portion of operating lease
liabilities - related party 168,551 123,094
Current portion of finance lease
liabilities 123,762 -
Taxes payable 703,264 1,206,141
---------- ----------
Total current liabilities 10,603,371 9,034,462
---------- ----------
OTHER LIABILITIES
Banking facilities 1,161,174 1,951,389
Operating lease liabilities 692,329 10,603
Operating lease liabilities - related
party 190,752 339,450
---------- ----------
Total other liabilities 2,044,255 2,301,442
---------- ----------
Total liabilities 12,647,626 11,335,904
---------- ----------
COMMITMENTS AND CONTINGENCIES
EQUITY
Class A ordinary shares, $0.0001 par
value; 400,000,000 shares authorized;
11,793,485 and 10,440,000 shares
issued and outstanding as of December
31, 2024 and 2023, respectively 1,179 1,044
Class B ordinary shares, $0.0001 par
value; 100,000,000 shares authorized;
4,560,000 shares issued and
outstanding as of December 31, 2024
and 2023 456 456
Additional paid-in capital 3,135,124 332,574
Retained earnings 15,051,662 15,530,562
Statutory reserves 248,761 248,761
Accumulated other comprehensive loss -1,013,306 -284,444
---------- ----------
Total Tungray Technologies Inc's
equity 17,423,876 15,828,953
---------- ----------
NONCONTROLLING INTERESTS -163,599 -114,513
TOTAL EQUITY 17,260,277 15,714,440
---------- ----------
Total liabilities and
shareholders' equity $29,907,903 $27,050,344
========== ==========
Tungray Technologies Inc and Subsidiaries
Consolidated Statements of Operations and Comprehensive (Loss) Income
(Stated in U.S. Dollars)
For the Years Ended December 31,
--------------------------------------
2024 2023
------------------- ---------------
Revenue - third parties $ 12,770,907 $ 14,042,956
Revenue - related parties 39,342 319,546
--------------- --------------
Total revenues 12,810,249 14,362,502
--------------- --------------
Cost of revenue - third
parties 7,187,415 7,378,471
Cost of revenue - related
parties 25,291 273,122
--------------- --------------
Total cost of revenues 7,212,706 7,651,593
--------------- --------------
Gross profit 5,597,543 6,710,909
--------------- --------------
Operating expenses:
Selling expenses 595,995 421,869
General and administrative
expenses 4,594,438 4,397,603
Research and development
expenses 1,063,210 791,762
--------------- --------------
Total operating expenses 6,253,643 5,611,234
--------------- --------------
(Loss) income from operations -656,100 1,099,675
--------------- --------------
Other income (expense)
Other income, net 220,477 336,576
Lease income - related party 19,762 19,126
Financial income (expenses),
net 122,226 -160,735
--------------- --------------
Total other income, net 362,465 194,967
--------------- --------------
(Loss) income before income
taxes -293,635 1,294,642
Income tax expense -278,082 -537,881
Net (loss) income -571,717 756,761
--------------- --------------
Less: net loss attributable to
noncontrolling interests -91,698 -99,775
Net (loss) income attributable
to Tungray Technologies Inc $ -480,019 $ 856,536
=============== ==============
Net (loss) income $ -571,717 $ 756,761
Foreign currency translation
adjustment -735,131 113,999
Comprehensive (loss) income -1,306,848 870,760
--------------- --------------
Less: comprehensive loss
attributable to
noncontrolling interests -99,086 -100,078
Total comprehensive (loss)
income attributable to
Tungray Technologies Inc $ -1,207,762 $ 970,838
=============== ==============
Weighted average number of
common shares outstanding -
basic and diluted 15,949,600 15,000,000
(Loss) earnings per share -
basic and diluted $ -0.03 $ 0.06
=============== ==============
Tungray Technologies Inc and Subsidiaries
Consolidated Statements of Cash Flows
(Stated in U.S. Dollars)
For the Years Ended December 31,
------------------------------------
2024 2023
------------------- ---------------
Cash flows from operating
activities:
Net (loss) income $ -571,717 $ 756,761
Adjustments to reconcile net
(loss) income to net cash
(used in) provided by
operating activities:
Depreciation expense 365,366 248,146
Amortization expense 10,269 15,118
Provision for credit
losses or doubtful
accounts 217,471 190,983
Write-down of inventories 129,686 6,713
Deferred tax expense
(benefits) - 74,616
Amortization of operating
lease right-of-use assets 261,754 154,455
Amortization of finance
lease right-of-use assets 11,951 -
Loss from disposal of
property and equipment 1,046 -
Changes in operating
assets and liabilities
Accounts and notes
receivable 1,019,565 -1,371,684
Accounts receivable -
related parties -16,938 -218,421
Prepayments -530,103 275,082
Prepayments - related
parties -2,653,081 -1,004,692
Inventories -117,157 -909,054
Other receivables and
other current assets -335,891 -52,168
Prepaid expenses and
deposits -57,373 -1,107
Operating lease
receivable - related
party - -
Accounts payable 345,455 -25,698
Accounts payable - related
party -411,139 392,777
Contract liabilities 2,244,964 2,146,876
Accrued expenses and
other payables 201,624 307,405
Operating lease
liabilities -132,525 -34,652
Operating lease
liabilities - related
parties -102,751 -204,940
Other payables -- related
parties 18,794 -
Taxes payable -474,512 -295,495
--------------- --------------
Net cash (used in)
provided by operating
activities -575,242 451,021
--------------- --------------
Cash flows from investing
activities:
Purchases of property, plant
and equipment -450,637 -43,254
Purchase of intangible assets -15,170 -37,993
Prepayment for land use right -2,016,296 -
Deposit for long-term
investment - -
Loans to related parties -538,596 -677,765
Repayments from related parties - 677,267
--------------- --------------
Net cash used in
investing activities -3,020,699 -81,745
--------------- --------------
Cash flows from financing
activities:
Borrowings from related parties 178,860 1,587,015
Repayments to related parties - -1,511,509
Repayments from loans
receivable - related parties - -
Proceeds from bank loan - 282,450
Repayments to bank loan -795,394 -1,218,164
Repayments to third party loans - -194,226
Repayments to related party
loans - -
Repayments of finance lease
liabilities -119,223 -
Dividends payments -517,140 -1,275,902
Capital contribution from
noncontrolling interest
shareholder 50,000 -
Proceeds from issuance of
shares upon IPO 5,000,000 -
Proceeds from issuance of
shares pursuant to exercise of
over-allotment 413,940 -
Payments of initial public
offering costs -1,418,521 -474,972
--------------- --------------
Net cash provided by
(used in) financing
activities 2,792,522 -2,805,308
--------------- --------------
Effect of exchange rate change
on cash and restricted cash -526,628 108,141
--------------- --------------
Net change in cash and
restricted cash -1,330,047 -2,327,891
Cash and restricted cash -
beginning of the year 10,802,405 13,130,296
--------------- --------------
Cash and restricted cash - end
of the year $ 9,472,358 $ 10,802,405
=============== ==============
Cash 8,968,814 10,802,405
Restricted cash 503,544 -
Supplemental disclosure of cash
flow information:
Interest paid $ 66,864 $ 91,276
=============== ==============
Income tax paid $ 746,044 $ 664,259
=============== ==============
Supplemental non-cash
information:
Finance lease right-of-use
assets obtained in exchange
for finance lease liabilities $ 235,556 $ -
Operating lease right-of-use
assets obtained in exchange
for operating lease
liabilities $ 1,013,605 $ 391,309
Termination of operating lease
right- of-use asset with lease
liability $ -27,667 $ -
Other receivables - related
party offset with other
payables - related party upon
execution of offset agreement $ - $ 381,710
Dividends declared to offset
with loans receivable -
related parties upon execution
of offset agreement $ - $ -
Deferred IPO costs transfer to
additional paid-in capital
upon IPO $ -1,192,734 $ -
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SOURCE Tungray Technologies Inc
(END) Dow Jones Newswires
May 14, 2025 17:15 ET (21:15 GMT)
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